As as second-time home-buyer, will I be able to qualify for a mortgage with my current low income (which is soon to increase due to changing jobs)?

Asked by Kasey, Indianapolis, IN Wed Mar 27, 2013

I am currently the sole owner of my home in Lafayette. I am a doctoral student who makes only about $1500/month at my research assistantship (it's so low because it's only part-time and they also pay for my tuition). Back when I bought my house, I qualified for the best rate available, as it was based on my income prior to becoming a doctoral student and I have an EXCELLENT credit score. Now I'm married, and with both incomes, we have absolutely no problem making making the $500 monthly payment.

However, now as the last step in my doctoral program, I have to do a full-time, year-long internship in Indianapolis, where my salary will increase to $24,000. I would like to sell my current home and buy one in Indianapolis, but I fear that I won't qualify for a loan based on my income. I don't want to add my husband to the loan because of his credit history. Do you think I will be able to somehow qualify for a mortgage myself? Would going through my current lender help?

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Marita Topmi…, Agent, Indianapolis, IN
Wed Mar 27, 2013
Hi YourActualName,

As you know there are no short cuts to knowledge.

I have a lender who specializes in rebuilding credit and he does it
with grant money into an account that your husband pays on ( small
payments of course ) . It's best to speak with a lender, by email is
fine, who can cover multiple options with you.

It's just always best to get facts from a professional rather than ideas
from others.

I'm happy to speak with you or email the lender's contact info to you.
And I hope, you'll allow me to help you when the time comes. But -
no strings.


Assoc Broker
0 votes
Tiff Atkinson, Agent, Indianapolis, IN
Wed Mar 27, 2013

I had a buyer not to long ago in a similar situation as yours. I put that buyer in contact with top lenders in Indianapolis and in months my client was able to sell their current home and buy a new one. Please contact me and I can assist further.

Tiff Atkinson
0 votes
Kristin Tomyn, Agent, Carmel, IN
Wed Mar 27, 2013
The best thing to do is speak with a local lender. They can run through various options with you and discuss your exact situation. I prefer to use local lenders that are big on Customer Service and will guide you through the entire process rather than a big bank where clients seem to be more of a number. They will be able to tell you if you have to sell your house first -- which may be the case and can fairly easily tell you what you would qualify for once you have your new salary in place. If you want to send me a message I can give you the names of a few people that my buyers have enjoyed working with. They are here in Indy.
0 votes
Hi Kristin, thank you for your reply! I have thought that maybe the next step is to speak with a lender, though I wondered whether I should speak to the mortgage specialist at my current lender (which is also a local, credit union that has great customer service) as a next step. I thought maybe since that bank knows that I have been timely and reliable with my payments, they would take that into consideration when pre-qualifying me for another loan, though I have no idea if it actually works that way. Plus, would a Lafayette bank be able to sell a mortgages on a house in Indianapolis, do you know? If not, I may be interested in speaking with someone from local banks in Indy.
Flag Wed Mar 27, 2013
Iyad Allis, Agent, Denver, CO
Wed Mar 27, 2013
Hello. In addition to a good credit score, some other factors which lenders will take into consideration is LTV (Loan To Value) and DTI (Debt To Income). With a low income, currently, your DTI will likely be too high to qualify for another mortgage. To counter that, you would need a pretty big down payment.

Your best option, other than selling your existing home, is to rent a home for one year in IN and rent out your existing home. Make sure that you claim the property than as a rental on your following years tax return. At that point, you could counter that debt from your credit with the rental payment coming in and have a better chance of getting a mortgage for another home in IN or whereever you end up.

I hope this information will help you. If you have any other questions, I am more than happy to answer you if you would like to email me directly at

Good luck with your move.

Iyad Allis
0 votes
Hi Iyad, thank you so much for your reply. That's too bad to hear I probably won't qualify now. After my internship, my income will likely triple, so qualifying for a loan then won't be a problem. It's just a shame to have to wait because I currently have a mortgage on my measly salary and have no trouble making all of my payments on time, and now my income is going to be increasing so one would think I would be even more qualified. Not to mention, the mortgage payment on a house I'd buy would be less than the cost of rent in Indianapolis =\ Shucks.
Flag Wed Mar 27, 2013
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